Question & AnswerQ&A (DOE DEPARTMENT CIRCULAR NO. DC 2004-04-003)
The official title is RULES AND REGULATIONS IMPLEMENTING MEMORANDUM CIRCULAR NO. 55.
The primary objective is to provide guidelines on the implementation of Memorandum Circular No. 55, which mandates the use of 1% by volume Coconut Methyl Ester in diesel fuel requirements of government-owned vehicles.
It applies to all land transport diesel vehicles owned or registered in the name of all government departments, bureaus, offices, agencies, instrumentalities, government-owned and controlled corporations, and local government units in the Philippines.
Coconut Methyl Ester or CME refers to fatty ester derived from coconut oil whose alkyl groups range in varying percentage from C8 to C18, suitable for compression ignition engines and similar types of engines, as defined by PNS 2020:2003.
CME-Diesel refers to diesel fuel blended with 1% Coconut Methyl Ester and 99% diesel fuel.
The Department of Energy (DOE) is the lead implementing agency for the CME Program in petroleum applications, starting with the CME-Diesel blend.
The DOE shall coordinate with other agencies and entities, provide policy direction, register CME products, accredit CME manufacturers and suppliers, monitor CME quality, and prepare a strategic plan for CME development and utilization.
Each government agency is solely responsible for the blending of CME for its diesel fuel requirements.
CME products must be procured only from DOE-accredited suppliers, registered by DOE, properly labeled with necessary information, and accompanied by a Quality Certificate indicating various quality parameters. The DOE conducts random testing and sampling to ensure compliance.
Violators are subject to applicable criminal, civil, and/or administrative sanctions based on existing laws, rules, and regulations.
The blending ratio is 1% Coconut Methyl Ester and 99% diesel fuel.
The duration of the program is one (1) year from the effectivity of this Department Circular.
Product registration is required under Section 12 of Republic Act No. 8479 (Downstream Oil Industry Deregulation Law of 1998) and Section 27 of Republic Act No. 8749 (Philippine Clean Air Act of 1999).
The PNS is established by the inter-agency committee, Technical Committee on Petroleum Products and Additives (TCPPA), pursuant to Republic Act No. 8749.